The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 imposes a duty on debtors to complete two debtor education courses, one as a condition precedent to filing for bankruptcy relief, and a second for later receiving a discharge of indebtedness. The stated purpose of this requirement was to have prospective debtors understand the potential alternatives to filing for bankruptcy relief with the goal of having some percentage of debtors settle their debt obligations outside of the bankruptcy system. Prior to BAPCPA, the Bankruptcy Code did not require consumer debtors to partake in financial education courses, and none were offered on a voluntary basis in conjunction with the bankruptcy system.
Consequences for Failing to Complete Credit Counseling
From the onset, the Office of the United States Trustee[1] took an aggressive position in seeking dismissal of bankruptcy cases in which the debtor neglected to strictly
